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Norm A1 Jorge Uscanga A01746197 - Coggle Diagram
Norm A1 Jorge Uscanga A01746197
Accounting
Record transactions of impact in an enterprise
Characteristics
Comparability
Reliable
Objective
Matching principle
Expenses need to be matched with revenues
Financial information
Characteristics
Provisional
Reliable
Objective
Verifiable
Useful
Relevant
Serves purpose
Financial performance and position of a company
Economic entity
The transaction of a business need to be separate from personal transactions
Time period assumption
The time intervals need to have a clear measure in the heading of each income statement
Full disclosure
Disclosure among the statement of the notes of statement
Revenue recongition
Recognition of a product being sold or a service performed as soon as possible
Cost principle
The cash spent when an item was originally purchased
The price cannot be modified, not even by inflation